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Jan. 16, 2018
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Minutes for SB14 - Committee on Financial Institutions and Insurance

Short Title

Providing for limited lines insurance coverage of self-storage units.

Minutes Content for Wed, Jan 18, 2017

The Chairperson opened the hearing on SB14.  Eileen Ma presented a summary of the bill and stood for questions; there were none.

Whitney Damron presented testimony supporting SB14.  Mr. Damron explained that nationally, there are more than 50,000 self-storage facilities in operation.  Kansas is the 27th largest in this industry having more than 700 facilities and approximately 110 Association members.  He further explained that this bill would allow self-storage companies or franchisees, under certain conditions, to offer limited-line insurance to their customers (renters) at the same facility for the loss of or damage to the personal property of the customers at such facilities.  He urged the members to favorably recommend SB14 for passage and stood for questions. Mr. Damron answered questions from Senators Pyle, Givens, Olson, and Billinger.   (Attachment 1)

There being no other questions and no other proponents' testimony, Chairperson Longbine called for opponents of the bill.

Will Larson spoke in opposition to the bill.  He stated that Kansas already has a statute that deals with limited lines licensing for certain lines of insurance, e.g., crop insurance, title insurance, pre-need funeral homes and others, wherein all agents are at least required to take the initial exam and follow-up with continuing education classes in certain subject areas.  He further remarked that KAIA thinks it is a bad idea to "chop up" the insurance industry into segments where people are not required to be licensed to sell insurance.   (Attachment 2)

Mark Lowry also testified in opposition to SB14.  He remarked that most insurance consumers do not fully understand what their insurance needs might be without counsel and depend on the advice of a licensed agent.  He posed that it is a licensed insurance agent who guides consumers through the maze of coverages, exclusions, and policy forms. He closed by saying that given the complexities of today's insurance industry, it requires the skill and advocacy of an educated and licensed property and casualty insurance agent to navigate the various carrier contracts, coverages, exclusions, claims, and interpolating when coverage would be under homeowners, renters, or storage facility policies.  (Attachment 3)  Mr. Lowry answered a question from Senator Suellentrop.

There being no other questions and no other conferees or written testimony submitted, Chairperson Longbine closed the hearing on SB14.